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It appears to be good news for government employees as the Center will increase its high-cost benefits (DA) to more than 1 million employees and retirees by four percentage points to 42 percent from 38 per current cent according to the agreed formula.



In accordance with a report by PTI, the DA increase will take effect on January 1 of this year. The latest Consumer Price Index for Industrial Workers (CPI-IW), released each month by the Labour Bureau, a division of the Labour Ministry, serves as the basis for calculating the Daily Allowance (DA) for employees and retirees. Given the inflation of numerous essential items in the AICPI (All India Consumer Price Index) index, the Labour Ministry raises the DA.


"On January 31, 2023, the CPI-IW for December 2022 was published. The increase in the dearness allowance amounts to 4.23 percent. DA increases above the decimal point are not taken into account by the government. DA is therefore anticipated to rise by four percentage points to 42%, "According to Shiva Gopal Mishra, general secretary of the All India Railwaymen Federation, PTI. Mishra went on to say that the Ministry of Finance's expenditure division will draught a proposal to increase DA along with the revenue implications. Presently, 38% DA is paid to more than one crore retirees and workers of the central government. The most recent change to the DA was made on September 28 of last year, and it became effective on July 1, 2022.